Although criminal tax fraud accusations in New York may be serious, with the correct defense, the punishment may be lessened, the charges may be abandoned, or at the very least, the charges may be reduced. If you or a loved one has been charged with criminal tax fraud in New York, you need assistance from criminal defense lawyers to help you understand the intricacies of the law and help you get the best outcome for your case. Tax evasion penalties in the state of New York is a serious case.
Criminal tax fraud in New York is governed by New York Tax Law sections § 1801–1806. Depending on how much tax was not paid, those found guilty of criminal tax fraud face different penalties. A class A misdemeanor charge for de minimis tax evasion is possible, as is a class B felony charge for criminal tax fraud in the first degree for tax evasion of $1,000,000 or more. Under Section 1801, there are eight different ways to perpetrate tax fraud, but each one calls for a deliberate mental state. For the purposes of Section 1801, willfulness requires the intent to commit fraud, the intent to avoid paying taxes, or the intent to neglect an obligation imposed by New York’s tax code.
In the state of New York, tax evasion is a criminal offense that can result in both fines and imprisonment. The specific penalties depend on the severity of the crime and the amount of tax that was not paid. For example, failing to file a tax return or pay taxes owed can be charged as a misdemeanor, which carries a potential penalty of up to one year in jail and a fine of up to $1,000. On the other hand, more serious cases of tax evasion, such as deliberately underreporting income or using false documents, can be charged as a felony, which carries a potential penalty of up to four years in prison and a fine of up to $100,000. In addition to these criminal penalties, individuals who are found guilty of tax evasion may also be required to pay back any taxes that were owed, as well as interest and penalties.
Ways To Commit Criminal Tax Fraud in New York
- Willfully not submitting a tax return or another important tax document.
- Willfully and with knowledge executing and preparing a fake tax return
- Lying and entering incorrect information on the tax return
- Willfully entering into a plan to bring fraud to the state of New York regarding any matter that is associated with tax law.
- Businesses failing to pay the required payroll or sales taxes remittances back to New York state.
- Willfully not taking in sales, excise, or withholding tax.
- Failing to pay one’s taxes willfully and intending to escape paying taxes.
- passing false tax exemption certifications.
Not a complete list, consult with your criminal lawyer or Criminal Tax Fraud attorney to ascertain whether your conduct is, as alleged by the Attorney General or a District Attorney, identified as a “tax fraud act.”
Each of the aforementioned offenses is punishable as a misdemeanor but may also be enhanced to the level of a felony by adding two more factors. The specific intent to avoid paying taxes or to defraud the state of New York constitutes the first element. The second requirement is that the fraud’s total financial damage must exceed the low cash ceiling of $300,000.
Criminal tax fraud in New York may also result in financial penalties. The felony charges under New York Tax Law 1800(c) are punished by fines of $50,000 for individuals and $250,000 for corporations, or twice the unpaid taxes. Penalties for misdemeanor tax fraud are $10,000 for individuals and $20,000 for businesses.
One piece of good news for defendants is that new regulations outlined in New York Tax Law 1807 forbid adding up the total amount of unpaid taxes over a long period of time. The only taxes that may be combined into one count are those that were unpaid during the year of the prosecution.
The inconvenience and burden of a tax fraud prosecution’s venue may increase the penalties. Any county where the economic activity that resulted in the unpaid taxes occurred may pursue legal action for New York criminal tax fraud under Section 20.40(4) of the New York Criminal Procedure Law. As a result, even though they may have never stepped foot in Erie county, a person who owns a business in Erie county but lives and files taxes in Suffolk county may be hauled before a court in Erie county to defend themselves against criminal tax fraud accusations.
Criminal Tax Fraud NYS
NEW YORK STATE CRIMINAL TAX FRAUD: NYS TAX LAW ARTICLE 1800
The prospect of dealing with a tax auditor or tax enforcement agent is quite terrifying, regardless of whether you are targeted or detained by a New York State agency, a similar agency working for or with the Federal government, or another organization. Experienced New York criminal defense attorneys and New York criminal tax fraud defense attorneys may explain that, in addition to the serious financial consequences that could result from committing this white-collar crime, imprisonment could last for decades.
Simply put, you should take quick protective measures if you receive contact from any branch of the New York State government, be it a prosecution office like a District Attorney’s Office or the New York State Attorney General’s Office or the New York State Department of Tax and Finance. Making admissions or voluntarily providing documents can, and frequently will strengthen and exacerbate a future arrest, indictment, or prosecution alleging a breach of a New York State Tax Law Article 1800 offense. This will only make your delicate legal situation worse.
As Eastcoastlaws.com stated earlier, If you or someone you love has been accused of criminal tax fraud in New York you need one of our New York criminal tax fraud lawyers to help you navigate the complexities of the law and help you achieve the best possible result in your case.
Steps to a Tax Evasion Investigation
A tax evasion investigation in New York typically begins with a complaint or referral to the New York State Department of Taxation and Finance (NYSDTF) or the Internal Revenue Service (IRS). The complaint or referral can come from a variety of sources, including whistleblowers, other government agencies, or even anonymous tips.
Initial Investigation
Once a complaint or referral has been received, the NYSDTF or the IRS will conduct an initial investigation to determine whether there is sufficient evidence to warrant a full-scale investigation. This initial investigation may include reviewing financial records, interviewing witnesses, and conducting surveillance.
Formal Investigation
If the initial investigation determines that there is sufficient evidence of tax evasion, a formal investigation will be launched. During this stage, the NYSDTF or the IRS will gather additional evidence, including financial records, bank statements, and other relevant documents. They may also conduct additional interviews with witnesses and conduct surveillance.
Grand Jury
If the investigation finds sufficient evidence, the agency will present the case to a grand jury. The grand jury is a panel of citizens who will hear evidence and determine whether there is enough evidence to bring criminal charges against the individual or business.
Criminal Charges
If the grand jury finds sufficient evidence, the NYSDTF or the IRS will file criminal charges against the individual or business for tax evasion. This can include charges such as filing a false tax return, failing to file a tax return, or evading the payment of taxes.
Arrest And Arraignment
If criminal charges are filed, the individual or business will be arrested and brought before a court for arraignment. During the arraignment, the individual or business will be informed of the charges against them and will have the opportunity to enter a plea of guilty or not guilty.
Trial
If the individual or business pleads not guilty, the case will proceed to trial. During the trial, both the prosecution and the defense will present evidence and call witnesses. The jury will then deliberate and determine whether the individual or business is guilty or not guilty of the charges.
Sentencing
If the individual or business is found guilty, they will be sentenced by the court. The sentence can include fines, imprisonment, or both.
It’s important to note that tax evasion is a serious crime, and individuals or businesses found guilty can face significant penalties, including fines and imprisonment. It’s also important to seek legal representation during any stage of the process, as an experienced attorney can help you navigate the legal system and protect your rights.
In conclusion, a tax evasion investigation in New York typically begins with a complaint or referral and proceeds through several stages, including an initial investigation, formal investigation, grand jury, criminal charges, arrest and arraignment, trial, and sentencing. It’s important to seek legal representation during any stage of the process, as an experienced attorney can help you navigate the legal system and protect your rights. Tax evasion is a serious crime and individuals or businesses found guilty can face significant penalties, including fines and imprisonment.
Court Actions
The District Attorney or the Attorney General’s Office will decide if they wish to file tax fraud charges against you after conducting an investigation. If you are ever prosecuted, you have the option of negotiating a plea agreement with the prosecution; however, it is recommended that you see a lawyer beforehand. You can be subject to some civil consequences in addition to criminal ones.
An investigation typically kicks off a criminal trial. The investigators will try to get confessions and information during the investigation that they can utilize to convict. Knowing the government’s burden of proof for tax fraud is crucial for avoiding unintentionally disclosing damaging information.
You are allowed to have counsel present and to exercise your right to silence so that you do not implicate yourself. Tell the authorities that you wish to meet with an attorney if they start asking you about tax fraud.
Following an inquiry, if the District Attorney or Attorney General’s Office determined that there is sufficient evidence to support charges, they will do so. You will be given a grand jury hearing after being charged, during which they will decide whether there is sufficient evidence to indict you. It is crucial to consult a lawyer before a grand jury hearing to assist you to get ready for the hearing since there is a chance to have the charges withdrawn.
Following the indictment, the government will continue to compile evidence and secure witnesses as it gets ready to go to trial. Your lawyer needs to be examining all of the available information at this time and organizing the strongest possible trial defense.
